Battery Performance - Loss of Hire
Battery Performance - Loss of Hire (BP - LoH) is a new cover from Norwegian Hull Club. The first cover of its type on the market, BP - LoH covers loss of income arising from time lost during rectification of a performance issue of a vessel’s battery system.
Norwegian Hull Club is committed to supporting its clients and members on their sustainability journeys. An innovative product geared towards such enabling support is Battery Power - Loss of Hire cover. This product has been co-developed with Munich RE, a leading global provider of reinsurance.
The Club understands that our clients need the reassurance of a cover that will help them should there be a gap between a battery manufacturer’s quoted performance and real-world performance, resulting in battery repair or replacement measures that result in Loss of Hire situations, negatively impacting their business.
The solution
BP - LoH, subject to the Nordic Marine Insurance Plan of 2013 (version 2023), is available as an optional addition to normal Loss of Hire cover as well as on a standalone basis. BP-LoH from Norwegian Hull Club covers the assured’s loss of income in accordance with Chapter 16 of the Plan, sub-clause 1 and 2, which is deleted and replaced with the following:
This insurance covers the assured’s loss of income due to the vessel being wholly or partially deprived of income-earning activity as a consequence of works to rectify a Non-Performance Event, including necessary alterations, additions, betterments and/ or improvements of original material, workmanship, design, plan or specification, provided however that it is proven by the Assured and or a third party expert that the work is necessary and reasonable.